The Federal Reserve of US is planning to follow European Central Bank as well as cutting rates this week by quarter of percent point. It has been made clear by Jerome Powell that the recession in US is highly unlikely. Contrary to this, acknowledgements have been made by him regarding tight economic headwinds.
Earlier Jerome Powell made a public statement in which he made it clear that the US administration is monitoring every other risk with utter care and a policy has been conducted in a manner which would address them straight away. Comments made by Powell bolstered expectations of investors with regard to announcement of rate cut which they expect might be announced during meeting of central bank which is pre-scheduled for September 17-18.
In July, Fed decreased interest rates in a decade due to escalating trade war between US and China. As per one of the analysts economy’s consumer-oriented parts are holding with perfection but since inflation has a non-threatening look thus there is a scope for Federal Reserve to provide economic support.
By the help of social media platform, Donald Trump is pressuring central bank. Last week Trump wrote on his account that it is mandatory for Federal Reserve to make interest rate zero or if possible less which will provide help in debt refinancing.
Trump also wrote that ECB is trying and getting success to depreciate Euro against dollar which will hurt American exports. Contrary to this, Feds aren’t taking any action. Due to Fed action Dow and S&P 500 would get to new heights. Last week China agreed to exempt cancer drugs, shrimps and several other products from its tariff list. Donald Trump in return delayed the increase of planned tariff to October 15, earlier it was October 1. On Friday, Beijing cleared way for several other purchases of pork and soybeans from the US.
Daniel Serrano had acquired considerable experience in writing and editing publications before recruited by Daily Industry Updates news portal as Editorial Manager. His key task is to conduct effective business reviews based on the most recent business strategies. Due to his stronghold and understanding over finance, marketing, business, and trade-related topics, he is known as a business counselor among the staff. His expertise in business-related topics is quite impressive. His business-related concepts are on fingertips, which aids in illustrating the business-related articles in brief and defined way, clear to even an amateur. He pursued his post graduation in Finance from a UK-based university.